Q&A: Allocations of costs to buyer/seller according to Incoterms 2010

When you buy or sell goods across national boundaries, seller and buyer must have a clear understanding of the terms for moving those goods to their destination. EXW, FOB, CIF and DDU are commonly used agreement models for international shipping. Each type of agreement specifies which party is responsible for the goods and the point at which responsibility transfers from the seller to the buyer.